Click based trading with intuitive grid display of market depth

ABSTRACT

A method and system for reducing the time it takes for a trader to place a trade when electronically trading on an exchange, thus increasing the likelihood that the trader will have orders filled at desirable prices and quantities. The “Mercury” display and trading method of the present invention ensure fast and accurate execution of trades by displaying market depth on a vertical or horizontal plane, which fluctuates logically up or down, left or right across the plane as the market prices fluctuates. This allows the trader to trade quickly and efficiently.

PRIORITY

[0001] The present application claims priority to a U.S. ProvisionalPatent Application entitled “Market Depth Display Click Based Tradingand Mercury Display” filed Mar. 2, 2000, the contents of which areincorporated herein by reference.

FIELD OF INVENTION

[0002] The present invention is directed to the electronic trading ofcommodities. Specifically, the invention provides a trader with aversatile and efficient tool for executing trades. It facilitates thedisplay of and the rapid placement of trade orders within the markettrading depth of a commodity, where a commodity includes anything thatcan be traded with quantities and/or prices.

BACKGROUND OF THE INVENTION

[0003] At least 60 exchanges throughout the world utilize electronictrading in varying degrees to trade stocks, bonds, futures, options andother products. These electronic exchanges are based on threecomponents: mainframe computers (host), communications servers, and theexchange participants' computers (client). The host forms the electronicheart of the fully computerized electronic trading system. The system'soperations cover order-matching, maintaining order books and positions,price information, and managing and updating the database for the onlinetrading day as well as nightly batch runs. The host is also equippedwith external interfaces that maintain uninterrupted online contact toquote vendors and other price information systems.

[0004] Traders can link to the host through three types of structures:high speed data lines, high speed communications servers and theInternet. High speed data lines establish direct connections between theclient and the host. Another connection can be established byconfiguring high speed networks or communications servers at strategicaccess points worldwide in locations where traders physically arelocated. Data is transmitted in both directions between traders andexchanges via dedicated high speed communication lines. Most exchangeparticipants install two lines between the exchange and the client siteor between the communication server and the client site as a safetymeasure against potential failures. An exchange's internal computersystem is Also often installed with backups as a redundant measure tosecure system availability. The third connection utilizes the Internet.Here, the exchange and the traders communicate back and forth throughhigh speed data lines, which are connected to the Internet. This allowstraders to be located anywhere they can establish a connection to theInternet.

[0005] Irrespective of the way in which a connection is established, theexchange participants' computers allow traders to participate in themarket. They use software that creates specialized interactive tradingscreens on the traders' desktops. The trading screens enable traders toenter and execute orders, obtain market quotes, and monitor positions.The range and quality of features available to traders on their screensvaries according to the specific software application being run. Theinstallation of open interfaces in the development of an exchange'selectronic strategy means users can choose, depending on their tradingstyle and internal requirements, the means by which they will access theexchange.

[0006] The world's stock, bond, futures and options exchanges havevolatile products with prices that move rapidly. To profit in thesemarkets, traders must be able to react quickly. A skilled trader withthe quickest software, the fastest communications, and the mostsophisticated analytics can significantly improve his own or his firm'sbottom line. The slightest speed advantage can generate significantreturns in a fast moving market. In today's securities markets, a traderlacking a technologically advanced interface is at 4 severe competitivedisadvantage.

[0007] Irrespective of what interface a trader uses to enter orders inthe market, each market supplies and requires the same information toand from every trader. The bids and asks in the market make up themarket data and everyone logged on to trade can receive this informationif the exchange provides it. Similarly, every exchange requires thatcertain information be included in each order. For example, traders mustsupply information like the name of the commodity, quantity,restrictions, price and multiple other variables. Without all of thisinformation, the market will not accept the order. This input and outputof information the same for every trader.

[0008] With these variables being constant, a competitive speedadvantage must come from other aspects of the trading cycle. Whenanalyzing the time it takes to place a trade order for a givencommodity, various steps contribute in different amounts to the totaltime required. Approximately 8% of the total time it takes to enter anorder elapses between the moment the host generates the price for thecommodity and the moment the client receives the price. The time ittakes for the client application to display the price to the traderamounts to approximately 4%. The time it takes for a trade order to betransmitted to the host amounts to approximately 8%. The remainder ofthe total time it takes to place an order, approximately 80%, isattributable to the time required for the trader to read the pricesdisplayed and to enter a trade order. The present invention provides asignificant advantage during the slowest portion of the tradingcycle—while the trader manually enters his order. Traders recognize thatthe value of time savings in this portion may amount to millions ofdollars annually.

[0009] In existing systems, multiple elements of an order must beentered prior to an order being sent to market, which is time consumingfor the trader. Such elements include the commodity symbol, the desiredprice, the quantity and whether a buy or a sell order is desired. Themore time a trader takes entering an order, the more likely the price onwhich he wanted to bid or offer will change or not be available in themarket. The market is fluid as many traders are sending orders to themarket simultaneously. It fact, successful markets strive to have such ahigh volume of trading that any trader who wishes to enter an order willfind a match and have the order filled quickly, if not immediately. Insuch liquid markets, the prices of the commodities fluctuate rapidly. Ona trading screen, this results in rapid changes in the price andquantity fields within the market grid. If a trader intends to enter anorder at a particular price, but misses the price because the marketprices moved before he could enter the order, he may lose hundreds,thousands, even millions of dollars. The faster a trader can trade, theless likely it will be that he will miss his price and the more likelyhe will make money.

SUMMARY OF THE INVENTION

[0010] The inventors have developed the present invention whichovercomes the drawbacks of the existing trading systems and dramaticallyreduces the time it takes for a trader to place a trade whenelectronically trading on an exchange. This, in turn, increases thelikelihood that the trader will have orders filled at desirable pricesand quantities.

[0011] The “Mercury” display and trading method of the present inventionensure fast and accurate execution of trades by displaying market depthon a vertical or horizontal plane, which fluctuates logically up ordown, left or right across the plane as the market prices fluctuates.This allows the trader to trade quickly and efficiently.

[0012] Specifically, the present invention is directed to a graphicaluser interface for displaying the market depth of a commodity traded ina market, including a dynamic display for a plurality of bids and for aplurality of asks in the market for the commodity and a static displayof prices corresponding to the plurality of bids and asks. In thisembodiment the pluralities of bids and asks are dynamically displayed inalignment with the prices corresponding thereto. Also described hereinis a method and system for placing trade orders using such displays.

[0013] These embodiments, and others described in greater detail herein,provide the trader with improved efficiency and versatility in placing,and thus executing, trade orders for commodities in an electronicexchange. Other features and advantages of the present invention willbecome apparent to those skilled in the art from the following detaileddescription. It should be understood, however, that the detaileddescription and specific examples, while indicating preferredembodiments of the present invention, are given by way of illustrationand not limitation. Many changes and modifications within the scope ofthe present invention may be made without departing from the spiritthereof, and the invention includes all such modifications.

BRIEF DESCRIPTION OF THE DRAWINGS

[0014]FIG. 1 illustrates the network connections between multipleexchanges and client sites;

[0015]FIG. 2 illustrates screen display showing the inside market andthe market depth of a given commodity being traded;

[0016]FIG. 3 illustrates the Mercury display of the present invention;

[0017]FIG. 4 illustrates the Mercury display at a later time showing themovement of values when compared to FIG. 3;

[0018]FIG. 5 illustrates a Mercury display with parameters set in orderto exemplify the Mercury trading method; and

[0019]FIG. 6 is a flowchart illustrating the process for Mercury displayand trading.

DETAILED DESCRIPTION OF THE PREFERRED EMBODIMENTS

[0020] As described with reference to the accompanying figures, thepresent invention provides a display and trading method to ensure fastand accurate execution of trades by displaying market depth on avertical or horizontal plane, which fluctuates logically up or down,left or right across the plane as the market prices fluctuates. Thisallows the trader to place trade orders quickly and efficiently. Acommodity's market depth is the current bid and ask prices andquantities in the market. The display and trading method of theinvention increase the likelihood that the trader will be able toexecute orders at desirable prices and quantities.

[0021] In the preferred embodiment, the present invention is implementedon a computer or electronic terminal. The computer is able tocommunicate either directly or indirectly (using intermediate devices)with the exchange to receive and transmit market, commodity, and tradingorder information. It is able to interact with the trader and togenerate contents and characteristics of a trade order to be sent to theexchange. It is envisioned that the system of the present invention canbe implemented on any existing or future terminal or device with theprocessing capability to perform the functions described herein. Thescope of the present invention is not limited by the type of terminal ordevice used. Further, the specification refers to a single click of amouse as a means for user input and interaction with the terminaldisplay as an example of a single action of the user. While thisdescribes a preferred mode of interaction, the scope of the presentinvention is not limited to the use of a mouse as the input device or tothe click of a mouse button as the user's single action. Rather, anyaction by a user within a short period of time, whether comprising oneor more clicks of a mouse button or other input device, is considered asingle action of the user for the purposes of the present invention.

[0022] The system can be configured to allow for trading in a single orin multiple exchanges simultaneously. Connection of the system of thepresent invention with multiple exchanges is illustrated in FIG. 1. Thisfigure shows multiple host exchanges 101-103 connected through routers104-106 to gateways 107-109. Multiple client terminals 110-116 for useas trading stations can then trade in the multiple exchanges throughtheir connection to the gateways 107-109. When the system is configuredto receive data from multiple exchanges, then the preferredimplementation is to translate the data from various exchanges into asimple format. This. “translation” function is described below withreference to FIG. 1. An applications program interface (“TT API” asdepicted in the figure) translates the incoming data formats from thedifferent exchanges to a simple preferred data format. This translationfunction may be disposed anywhere in the network, for example, at thegateway server, at the individual workstations or at both. In addition,the storage at gateway servers and at the client workstations, and/orother external storage cache historical data such as order books whichlist the client's active orders in the market; that is, those ordersthat have neither been filled nor cancelled. Information from differentexchanges can be displayed at one or in multiple windows at the clientworkstation. Accordingly, ‘while reference is made through the remainderof the specification to a single exchange to which a trading terminal isconnected, the scope of the invention includes the ability to trade, inaccordance with the trading methods described herein, in multipleexchanges using a single trading terminal.

[0023] The preferred embodiments of the present invention include thedisplay of “Market Depth” and allow trader to view the market depth of acommodity and to execute trades within the market depth with a singleclick of a computer mouse button. Market Depth represents the order bookwith the current bid and ask prices and quantities in the market. Inother words, Market Depth is each bid and ask that was entered into themarket, subject to the limits noted below, in addition to the insidemarket. For a commodity being traded, the “inside market” is the highestbid price and the lowest ask price.

[0024] The exchange sends the price, order and fill information to eachtrader on the exchange. The present invention processes this informationand maps it through simple algorithms and mapping tables to positions ina theoretical grid program or any other comparable mapping technique formapping data to a screen. The physical mapping of such information to ascreen grid can be done by any technique known to those skilled in theart. The present invention is not limited by the method used to map thedata to the screen display.

[0025] How far into the market depth the present invention can displaydepends on how much of the market depth the exchange provides. Someexchanges supply an infinite market depth, while others provide nomarket depth or only a few orders away from the inside market. The userof the present invention can also chose how far into the market depth todisplay on his screen.

[0026]FIG. 2 illustrates a screen display of an invention described in acommonly owned co-pending application entitled “Click Based Trading withMarket Depth Display” Ser. No. ______, filed on ______ the contents ofwhich are incorporated herein by reference. This display shows theinside market and the market depth of a given commodity being traded.Row 1 represents the “inside market” for the commodity being tradedwhich is the best (highest) bid price and quantity and the best (lowest)ask price and quantity. Rows 2-5 represent the “market depth” for thecommodity being traded. In the preferred embodiment of the presentinvention, the display of market depth (rows 2-5) lists the availablenext-best bids, in column 203, and asks, in column 204. The working bidand ask quantity for each price level is also displayed in columns 202and 205 respectively (inside market—row 1). Prices and quantities forthe inside market and market depth update dynamically on a real timebasis as such information is relayed from the market.

[0027] In the screen display shown in FIG. 2, the commodity (contract)being traded is represented in row 1 by the character string “CDHO”. TheDepth column 208 will inform the trader of a status by displayingdifferent colors. Yellow indicates that the program application iswaiting for data. Red indicates that the Market Depth has failed toreceive the data from the server and has “timed out.” Green indicatesthat the data has just been updated. The other column headings in thisand all of the other figures, are defined as follows. BidQty (BidQuantity): the quantity for each working bid, BidPrc (Bid Price): theprice for each working bid, AskPrc (Ask Price): the price for eachworking ask, AskQty (Ask Quantity): the quantity for each working ask,LastPrc (Last Price): the price for the last bid and ask that werematched in the market and LastQty (Last Quantity): the quantity added atthe last price. Total represents the total quantity traded of the givencommodity.

[0028] The configuration of the screen display itself informs the userin a more convenient and efficient manner than existing systems. Tradersgain a significant advantage by seeing the market depth because they cansee trends in the orders in the market. The market depth display showsthe trader the interest the market has in a given commodity at differentprice levels. If a large amount of bids or asks are in the market nearthe trader's position, he may feel he should sell or buy before theinside market reaches the morass of orders. A lack of orders above orbelow the inside market might prompt a trader to enter orders near theinside market. Without seeing the market depth, no such strategies couldbe utilized. Having the dynamic market depth, including the bid and askquantities and prices of a traded commodity aligned with and displayedbelow the current inside market of the commodity conveys the informationto the user in a more intuitive and easily understandable manner. Trendsin the trading of, the commodity and other relevant characteristics aremore easily identifiable by the user through the use of the presentinvention.

[0029] Various abbreviations are used in the screen displays, andspecifically, in the column headings of the screen displays reproducedherein. Some abbreviations have been discussed above. A list of commonabbreviations and their meanings is provided in Table 1. TABLE IAbbreviations. COLUMN DESCRIPTION COLUMN DESCRIPTION Month ExpirationMonth/Year TheoBid Theoretical Bid Price Bid Mbr(1) Bid Member IDTheoAsk Theoretical Ask Price WrkBuys(2) Working Buys for entire GroupID Qact Quote Action (Sends individual quotes) BidQty Bid Quantity BQQTest Bid Quote Quantity ThrshBid(6) Threshold Bid Price BQP Test BidQuote Price BidPrc Bid Price Mkt BQQ Market Bid Quote Quantity Bid QtyAccurn Accumulated Bid Quantity Mkt BQP Market Bid Quote Price BidPrcAvg Bid Price Average Quote Checkbox activates/ deactivates contract forquoting AskPrc Avg Ask Price Average Mkt AQQ Market Ask Quote QuantityAskQty Accurn Accumulated Ask Quantity Mkt AQP Market Ask Quote PriceAskPrc Ask Price AQP Ask Quote Price ThrshAsk(6) Threshold Ask Price AQQAsk Quote Quantity AskQty Ask Quantity Imp BidQty(5) Implied BidQuantity WrkSells(2) Working Sells for entire Group ID Imp BidPrc(5)Implied Bid Price Ask Mbr(1) Ask Member ID Imp AskQty(5) Implied AskQuantity NetPos Net Position Imp AskPrc(5) Implied Ask Price FFNetPosFast Fill Net Position Gamma(3) Change in Delta given 1 pt change inunderlying LastPrc Last Price Delta (3) Change in price given 1 ptchange in underlying LastQty Last Quantity Vola (3) Percent volatilityTotal Total Traded Quantity Vega (3) Price change given I% change inVola High High Price Rhop (3) Price change given I% change in interestrate Low Low Price Theta(3) Price change for every day that elapses OpenOpening Price Click Trd Activate/deactivate click trading by contractClose Closing Price S (Status) Auction, Closed, FastMkt, Not Tradable,Pre-trading, Tradable, S = post-trading Chng Last Price-Last CloseExpiry Expiration Month/Year TheoPrc Theoretical Price

[0030] As described herein, the display and trading method of thepresent invention provide the user with certain advantages over systemsin which a display of market depth, as shown in FIG. 2, is used. TheMercury display and trading method of the present invention ensure fastand accurate execution of trades by displaying market depth on avertical or horizontal plane, which fluctuates logically up or down,left or right across the plane as the market prices fluctuates. Thisallows the trader to trade quickly and efficiently. An example of such aMercury display is illustrated in the screen display of FIG. 3.

[0031] The display of market depth and the manner in which traders tradewithin the market depth can be effected in different manners, which manytraders will find materially better, faster and more accurate. Inaddition, some traders may find the display of market depth to bedifficult to follow. In the display shown in FIG. 2, the market depth isdisplayed vertically so that both Bid and Ask prices descend the grid.The Bid prices descend the market grid as the prices decrease. Askprices also descend the market grid as these prices actually increase.This combination may be considered counterintuitive and difficult tofollow by some traders.

[0032] The Mercury display overcomes this problem in an innovative andlogical manner. Mercury also provides an order entry system, marketgrid, fill window and summary of market orders in one simple window.Such a condensed display materially simplifies the trading system byentering and tracking trades in an extremely efficient manner. Mercurydisplays market depth in a logical, vertical fashion or horizontally orat some other convenient angle or configuration. A vertical field isshown in the figures and described for convenience, but the field couldbe horizontal or at an angle. In turn, Mercury further increases thespeed of trading and the likelihood of entering orders at desired priceswith desired quantities. In the preferred embodiment of the invention,the Mercury display is a static vertical column of prices with the bidand ask quantities displayed in vertical columns to the side of theprice column and aligned with the corresponding bid and ask prices. Anexample of this display is shown in FIG. 3.

[0033] Bid quantities are in the column 1003 labeled BidQ and askquantities are in column 1004 labeled AskQ. The representative ticksfrom prices for the given commodity are shown in column 1005. Thecolumn, does not list the whole prices (e.g. 95.89), but rather, justthe last two digits (e.g. 89). In the example shown, the inside market,cells 1020, is 18 (best bid quantity) at 89 (best bid price) and 20(best ask quantity) at 90 (best ask price). In the preferred embodimentof the invention, these three columns are shown in different colors sothat the trader can quickly distinguish between them.

[0034] The values in the price column are static; that is, they do notnormally change positions unless a re-centering command is received(discussed in detail later). The values in the Bid and Ask columnshowever, are dynamic; that is, they move up and down (in the verticalexample) to reflect the market depth for the given commodity. The LTQcolumn 1006 shows the last traded quantity of the commodity. Therelative position of the quantity value with respect to the Price valuesreflects the price at which that quantity was traded. Column 1001labeled EI W (entered/working) displays the current status of thetrader's orders. The status of each order is displayed in the price rowwhere it was entered. For example, in cells 1007, the number next to Sindicates the number of the trader's ordered lots that have been sold atthe price in the specific row. The number next to W indicates the numberof the trader's ordered lots that are in the market, but have not beenfilled—i.e. the system is working on filling the order. Blanks in thiscolumn indicate that orders are entered or working at that price. Incells 1008, the number next to B indicates the number of the trader'sordered lots that have been bought a˜the price in the specific row. Thenumber next to W indicates the number of the trader's ordered lots thatare in the market, but have not been filled—i.e. the system is workingon filling the order.

[0035] Various parameters are set and information is provided in column1002. For example, “10:48:44” in cell 1009 shows the actual time of day.The L and R fields in cell 1010 indicate a quantity value, which may beadded to the order quantity entered. This process is explained belowwith respect to trading under Mercury. Below the L and R fields, in cell1011, a number appears which represents the current market volume. Thisis the number of lots that have been traded for the chosen contract.Cell 1012, “X 10”, displays the Net Quantity, the current position ofthe trader on the chosen contract. The number “10” represents thetrader's buys minus sells. Cell 1013 is the “Current Quantity”; thisfield represents the quantity for the next order that the trader willsend to market. This can be adjusted with right and left clicks (up anddown) or by clicking the buttons which appear below the Current Quantityin cells 1014. These buttons increase the current quantity by theindicated amount; for example, “10” will increase it by 10; “1H” willincrease it by 100; “1K” will increase it by 1000. Cell 1015 is theClear button; clicking this button will clear the Current Quantityfield. Cell 1016 is the Quantity Description; this is a pull down menuallowing the trader to chose from three Quantity Descriptions. The pulldown menu is displayed when the arrow button in the window is clicked.The window includes NetPos, Offset and a field allowing the trader toenter numbers.. Placing a number in this field will set a default buy orsell quantity. Choosing “Offset” in this field will enable the L/Rbuttons of cell 1010. Choosing “NetPos” in this field will set thecurrent Net Quantity (trader's net position) as the trader's quantityfor his next trade. Cell 1017 are +/− buttons; these buttons will alterthe size of the screen-either larger (+) or smaller (−). Cell 1018 isused to invoke Net 0; clicking this button will reset the Net Quantity(cell 101 1) to zero. Cell 1019 is used to invoke Net Real; clickingthis button will reset the Net Quantity (cell 10 11) to its actualposition.

[0036] The inside market and market depth ascend and descend as pricesin the market increase and decrease. For example, FIG. 4 shows a screendisplaying the same market as that of FIG. 3 but at a later intervalwhere the inside market, cells 1101, has risen three ticks. Here, theinside market for the commodity is 43 (best bid quantity) at 92 (bestbid price) and 63 (best ask quantity) at 93 (best ask price). Incomparing FIGS. 3 and 4, it can be seen that the price column remainedstatic, but the corresponding bids and asks rose up the price column.Market Depth similarly ascends, and descends the price column, leaving avertical history of the market.

[0037] As the market ascends or descends the price column, the insidemarket, might go above or below the price column displayed on a trader'sscreen. Usually a trader will want to be able to see the inside marketto assess future trades. The system of the present invention addressesthis problem with a one click centering feature. With a single click atany point within the gray area, 1021, below the “Net Real” button, thesystem will re-center the inside market on the trader's screen. Also,when using a three-button mouse, a click of the middle mouse button,irrespective of the location of the mouse pointer, will re-center theinside market on the trader's screen.

[0038] The same information and features can be displayed and enabled ina horizontal fashion. Just as -the market ascends and descends thevertical Mercury display shown in FIGS. 3 and 4, the market will moveleft and right in the horizontal Mercury display. The same data and thesame information gleaned from the dynamical display of the data isprovided. It is envisioned that other orientations can be used todynamically display the data and such orientations are intended to comewithin the scope of the present invention.

[0039] Next, trading commodities, and specifically, the placement oftrade orders using the Mercury display is described. Using the Mercurydisplay and trading method, a trader would first designate the desiredcommodity and, if applicable, the default quantities. Then he can tradewith single clicks of the right or left mouse button. The followingequations are used by the system to generate trade orders and todetermine the quantity and price to be associated with the trade order.The following abbreviations are used in these formulas: P=Price value ofrow clicked, R=Value in R field, L=Value in L field, Q=Current Quantity,Q_(a)=Total of all quantities in AskQ column at an equal or better pricethan P, Q_(b)=Total of all quantities in BidQ column at an equal orbetter price than P, N=Current Net Position, Bo=Buy order sent to marketand So=Sell order—sent to market.

[0040] Apy order entered using right mouse button

Bo=(Q _(a) +R)P   (Eq. 1)

[0041] If BidQ field clicked.

So=(Q _(b) +R)P   (Eq. 2)

[0042] If AskQ field clicked.

[0043] Orders entered using the left mouse button

[0044] If “Offset” mode chosen in Quantity Description field then:

Bo=(Q _(a) +L)P   (Eq. 3)

[0045] If BidQ field clicked.

SO=(Q _(b) +L)P   (Eq. 4)

[0046] If AskQ field clicked.

[0047] If “number” mode chosen in Quantity Description field then:

Bo=QP   (Eq. 5)

So=QP   (Eq. 6)

[0048] If “NetPos” mode chosen in Quantity Description field then:

Bo=NP   (Eq. 7)

So=NP   (Eq. 8)

[0049] Orders can also be sent to market for quantities that varyaccording to the quantities available in the market; quantities presetby the trader; and which mouse button the trader clicks. Using thisfeature, a trader can buy or sell all of the bids or asks in the marketat or better than a chosen price with one click. The trader could alsoadd or subtract a preset quantity from the quantities outstanding in themarket. If the trader clicks in a trading cell—i.e. in the BidQ or AskQcolumn, he will enter an order in the market. The parameters of theorder depend on which mouse button he clicks and what preset values heset.

[0050] Using the screen display and values from FIG. 5, the placement oftrade orders using the Mercury display and trading method is nowdescribed using examples. A left click on the 18 in the BidQ column 1201will send an order to market to sell 17 lots (quantity # chosen on theQuantity Description pull down menu cell 1204) of the commodity at aprice of 89 (the corresponding price in the Prc column 1203). Similarly,a left click on the 20 in the AskQ column 1202 will send an order tomarket to buy 17 lots at a price of 90.

[0051] Using the right mouse button, an order would be sent to market atthe price that corresponds to the row clicked for the total quantity oforders in the market that equal or better the price in that row plus thequantity in the R field 1205. Thus, a right click in the AskQ column1202 in the 87 price row will send a sell order to market at a price of87 and a quantity of 150. 150 is the sum of all the quantities 30, 97,18 and 5. 30, 97 and 18 are all of the quantities in the market thatwould meet or better the trader's sell order price of 87. Thesequantities are displayed in the BidQ column 1201 because this columnrepresents the orders outstanding in the market to purchase thecommodity at each corresponding price. The quantity 5 is the quantitypre-set in the R field 1205.

[0052] Similarly, a right click in the BidQ column 1201 at the sameprice level of 87 would send a buy limit order to market for a quantityof 5 at a price of 87. The quantity is determined in the game manner asabove. In this example, though, there are no orders in the market thatequal or better the chosen price—there are no quantities in the AskQcolumn 1202 that equal or better this price. Therefore, the sum of theequal or better quantities is zero (“0”). The total order entered by thetrader will be the value in the R field, which is 5.

[0053] An order entered with the left mouse button and the “Offset”option chosen in the quantity description field 1204 will be calculatedin the same way as above, but the quantity in the L field 1206 will beadded instead of the quantity in the R field 1205. Thus, a left click inthe BidQ column 1201 in the 92 price row will send a buy order to marketat a price of 92 and a quantity of 96. 96 is the sum of all thequantities 45, 28, 20 and 3. 45, 28 and 20 are all quantities in themarket that would meet or better the trader's buy order price of 92.These quantities are displayed in the AskQ column 1202 because thiscolumn represents the orders outstanding in the market to sell thecommodity at each corresponding price. The quantity 3 is the quantitypre-set in the L field 1206.

[0054] The values in the L or R fields may be negative numbers. Thiswould effectively decrease the total quantity sent to market. In otherwords, in the example of a right click in the AskQ column 1202 in the 87price row, if the R field was −5, the total quantity sent to marketwould be 140 (30+97+18+(−5)).

[0055] If a trader chose the “NetPos” option in the quantity descriptionfield 1204, a right click would still work as explained above. A leftclick would enter an order with a price corresponding to the price rowclicked and a quantity equal to the current Net position of the trader.The Net position of the trader is the trader's current position on thechosen contract. In other words, if the trader has bought 10 morecontracts than he has sold, this value would be 10. NetPos would notaffect the quantity of an order sent with a right click.

[0056] If the trader chose a number value in the quantity description, aleft click would send an order to market for the current quantity chosenby the trader. The default value of the current quantity will be thenumber entered in the quantity description field, but it could bechanged by adjusting the figure in the current quantity field 1204.

[0057] This embodiment of the invention also allows a trader to deleteall of his working trades with a single click of either the right orleft mouse button anywhere in the last traded quantity (LTQ) column1207. This allows a trader to exit the market immediately. Traders willuse this feature when they are losing money and want to stop the lossesfrom pilling up. Traders may also use this feature to quickly exit themarket upon making a desired profit. The invention also allows a traderto delete all of his. orders from the market at a particular pricelevel. A click with either mouse button in the Entered/Working (E/W)column 1208 will delete all working orders in the cell that was clicked.Thus, if a trader believes that previously sent orders at a particularprice that have not been filled would be poor trades, he can deletethese orders with a single click.

[0058] The process for placing trade orders using the Mercury displayand trading method of the present invention as described above is shownin the flowchart of FIG. 6. First, in step 1301, the trader has theMercury display on the trading terminal screen showing the market for agiven commodity. In step 1302, the parameters are set in the appropriatefields, such as the L and R fields and the Current Quantity, NetPos orOffset fields from the pull down menu. In step 1303, the mouse pointeris positioned and clicked over a cell in the Mercury display by thetrader. In step 1304, the system determines whether the cell clicked isa tradable cell (i.e. in the AskQ column or BidQ column). If not, thenin step 1305, no trade order is created or sent and, rather, otherquantities are adjusted or functions are performed based upon the cellselected. Otherwise, in step 1306, the system determines whether it wasthe left or the right button of the mouse that was clicked. If it wasthe right, then in step 1307, the system will use the quantity in the Rfield when it determines the total quantity of the order in step 1310.If the left button was clicked, then in step 1308, the system determineswhich quantity description was chosen: Offset, NetPos or an actualnumber.

[0059] If Offset was chosen, then the system, in step 1309, will use thequantity in the L field when it determines the total quantity of the.order in step 1310. If NetPos was chosen, then the system, in step 1312,will determine that the total quantity for the trade order will becurrent NetPos value, i.e. the net position of the trader in the givencommodity. If an actual number was used as the quantity description,then, in step 1311, the system will determine that the total quantityfor the trade order will be the current quantity entered. In step 1310,the system will determine that the total quantity for the trade orderwill be the value of the R field (if step 1307 was taken) or the valueof the L field (if step 1309 was taken) plus all quantities in themarket for prices better than or equal to the price in the row clicked.This will add up the quantities for each order in, the market that willfill the order being entered by the trader (plus the L or R value).

[0060] After either steps 1310, 1311 or 1312, the system, in step 1313,determines which column was clicked, BidQ or AskQ. If AskQ was clicked,then, in step 1314, the system sends a sell limit order to the market atthe price corresponding to the row for the total quantity as alreadydetermined. If BidQ was clicked, then, in-step 1315, the system sends abuy limit order to the market at the price corresponding to the row forthe total quantity as already determined.

[0061] It should be understood that the above description of theinvention and specific examples, while indicating preferred embodimentsof the present invention, are given by way of illustration and notlimitation. Many changes and modifications within the scope of thepresent invention may be made without departing from the spirit thereof,and the present invention includes all such changes and modifications.

We claim:
 1. A method of displaying, on an electronic display device,the market depth of a commodity traded in a market, said methodcomprising: dynamically displaying a plurality of bids in the market forsaid commodity; dynamically displaying of a plurality of asks in themarket for said commodity; and statically displaying pricescorresponding to said plurality of bids and asks; wherein saidpluralities of bids and asks are dynamically displayed in alignment withthe prices corresponding thereto.
 2. A method of displaying, on anelectronic display device, the market depth of a commodity traded in amarket according to claim 1, wherein said bids and asks are orientedvertically.
 3. A method of displaying, on an electronic display device,the market depth of a commodity traded in a market according to claim 1,wherein said bids and asks are oriented horizontally.
 4. A method ofdisplaying, on an electronic display device, the market depth of acommodity traded in a market according to claim 1, wherein a pluralityof said displayed bids and asks in the market include bid and askquantities of the commodity.
 5. A method of displaying, on an electronicdisplay device, the market depth of a commodity traded in a marketaccording to claim 1, wherein said bids and asks are displayed indifferent colors.
 6. A method of displaying, on an electronic displaydevice, the market depth of a commodity traded in a market according toclaim 1, re-centering said prices corresponding to the bids and asksabout an inside market price upon receipt of a re-centering instruction.7. A method of displaying, on an electronic display device, the marketdepth of a commodity traded in a market according to claim 1, furthercomprising dynamically displaying entered and working orders inalignment with the prices corresponding thereto.
 8. A computer readablemedium having program code recorded thereon for execution on a computerfor displaying the market depth of a commodity traded in a market,comprising: a first program code for dynamically displaying a pluralityof bids in the market for said commodity; a second program code fordynamically displaying of a plurality of asks in the market for saidcommodity; and a third program code for statically displaying pricescorresponding to said plurality of bids and asks; wherein saidpluralities of bids and asks are dynamically displayed in alignment withthe prices corresponding thereto.
 9. A computer readable medium havingprogram code recorded thereon for execution on a computer for displayingthe market depth of a commodity traded in a market according to claim 8,further comprising program code to ensure that said displayed bids, asksand prices are oriented vertically.
 10. A computer readable mediumhaving program code recorded thereon for execution on a computer fordisplaying the market depth of a commodity traded in a market accordingto claim 8, further comprising program code to ensure that saiddisplayed bids, asks and prices are oriented horizontally.
 11. Acomputer readable medium having program code recorded thereon forexecution on a computer for displaying the market depth of a commoditytraded in a market according to claim 8, further comprising program codeto ensure that a plurality of bids and asks in the market include bidand ask quantities of the commodity.
 12. A computer readable mediumhaving program code recorded thereon for execution on a computer fordisplaying the market depth of a commodity traded in a market accordingto claim 8, further comprising program code to ensure that bids and asksare displayed in different colors.
 13. A computer readable medium havingprogram code recorded thereon for execution on a computer for displayingthe market depth of a commodity traded in a market according to claim 8,further comprising program code to ensure that said displayed pricescorresponding to the bids and asks are re-centered about an insidemarket price upon receipt of a re-centering instruction.
 14. A computerreadable medium having program code recorded thereon for execution on acomputer for displaying the market depth of a commodity traded in amarket according to claim 8, further comprising program code fordynamically displaying entered and working orders in alignment with theprices corresponding thereto.
 15. A graphical user interface fordisplaying the market depth of a commodity traded in a market,comprising: a dynamic display of a plurality of bids in the market forsaid commodity; a dynamic display of a plurality of asks in the marketfor said commodity; and a static display of prices corresponding to saidplurality of bids and asks; wherein said pluralities of bids and asksare dynamically displayed in alignment with the prices correspondingthereto.
 16. A graphical user interface according to claim 15, whereinsaid displays are oriented vertically.
 17. A graphical user interfaceaccording to claim 15, wherein said displays are oriented horizontally.18. A graphical user interface according to claim 15, wherein saiddisplays of the pluralities of bids and asks in the market include bidand ask quantities of the commodity.
 19. A graphical user interfaceaccording to claim 15, wherein said displays are displayed in differentcolors.
 20. A graphical user interface according to claim 15, whereinsaid display of prices corresponding to the bids and asks is re-centeredabout an inside market price upon re-centering instruction from a user.21. A graphical user interface according to claim 15, further comprisinga display of entered and working orders displayed in alignment with theprices corresponding thereto.
 22. A method of placing a trade order fora commodity on an electronic exchange, using a graphical user interfaceand a user input device and having preset parameters for trade orders,said method comprising: displaying the market depth of a commoditytraded in a market, through a dynamic display of a plurality of bids anda plurality of asks in the market for the commodity, including the bidand ask quantities of the commodity, aligned with a static display ofprices corresponding thereto; and initiating placement of a trade orderof the commodity through a single action of the user input deviceinitiating placement of a trade order of the commodity through a singleaction of the user input device with a pointer of the user input devicepositioned over an area in said dynamic displays of bids and asks;wherein the contents of the trade order are based in part upon thepreset parameters and the position of the pointer at the time of saidsingle action.
 23. A method of placing a trade order according to claim22, wherein said trade order is a buy order if the position of thepointer at the time of said single action is within the display of bidsand wherein said trade order is a sell order if the position of thepointer at the time of said single action is within the display of asks.24. A method of placing a trade order according to claim 23, wherein thetrade order is for a pre-determined fixed quantity and for a pricecorresponding to the position of the pointer at the time of said singleaction.
 25. A method of placing a trade order according to claim 23,wherein the trade order is for a quantity equal to a current netposition of the user in the commodity and for a price corresponding tothe position of the pointer at the time of said single action.
 26. Amethod of placing a trade order according to claim 23, wherein the tradeorder is for a quantity equal to a pre-determined fixed offset plus thesum of all quantities in the market at prices better than or equal to aprice corresponding to the position of the pointer at the time of saidsingle action and for a price corresponding to said position.
 27. Amethod of placing a trade order according to claim 26, wherein saidoffset is equal to a first pre-determined value if a single action of afirst type is taken and said offset is equal to a second pre-determinedvalue if a single action of a second type is taken.
 28. A method ofplacing a trade order according to claim 22, further comprisingcanceling said trade order in response to a subsequent single action ofthe user input device.
 29. A computer readable medium having programcode recorded thereon, for execution on a computer having a graphicaluser interface and a user input device and having preset parameters fortrade orders, to place a trade order for a commodity on an electronicexchange, comprising: a first program code displaying the market depthof a commodity traded in a market, through a dynamic display of aplurality of bids and a plurality of asks in the market for thecommodity, including the bid and ask quantities of the commodity,aligned with a static display of prices corresponding thereto; a secondprogram code for initiating placement of a trade order of the commoditythrough a single action of the user input device with a pointer of theuser input device positioned over an area in said dynamic displays ofbids and asks; and a third program code for setting characteristics ofthe trade order based in part upon the preset parameters and theposition of the pointer at the time of said single action.
 30. Acomputer readable medium having program code recorded thereon, forexecution on a computer to place a trade order according to claim 29,further comprising program code for establishing that said trade orderis a buy order if the position of the pointer at the time of said singleaction is within the display of bids and that said trade order is a sellorder if the position of the pointer at the time of said single actionis within the display of asks.
 31. A computer readable medium havingprogram code recorded thereon, for execution on a computer to place atrade order according to claim 30, further comprising program code forestablishing that the trade order is for a pre-determined fixed quantityand for a price corresponding to the position of the pointer at the timeof said single action.
 32. A computer readable medium having programcode recorded thereon, for execution on a computer to place a tradeorder according to claim 30, further comprising program code forestablishing that the trade order is for a quantity equal to a currentnet position of the user in the commodity and for a price correspondingto the position of the pointer at the time of said single action.
 33. Acomputer readable medium having program code recorded thereon, forexecution on a computer to place a trade order according to claim 30,further comprising program code for establishing that the trade order isfor a quantity equal to a pre-determined fixed offset plus the sum ofall quantities in the market at prices better than or equal to a pricecorresponding to the position of the pointer at the time of said singleaction and for a price corresponding to said position.
 34. A computerreadable medium having program code recorded thereon, for execution on acomputer to place a trade order according to claim 33, furthercomprising program code for establishing that said offset is equal to afirst pre-determined value if a single action of a first type is takenand said offset is equal to a second pre-determined value if a singleaction of a second type is taken.
 35. A client system for placing atrade order for a commodity on an electronic exchange, the systemcomprising: a display device for displaying the market depth of acommodity traded in a market, through a dynamic display of a pluralityof bids and a plurality of asks in the market for the commodity,including the bid and ask quantities of the commodity, aligned with astatic display of prices corresponding thereto; a user input device forpositioning a pointer thereof over an area in said dynamic displays ofbids and asks and for initiating placement of a trade order of thecommodity through a single action of the user input device; and a tradeorder characteristics setting component for setting characteristics ofthe trade order based in part upon preset parameters and the position ofthe pointer at the time of said single action.
 36. A client system forplacing a trade order for a commodity according to claim 35, whereinsaid trade order characteristics setting component establishes that saidtrade order is a buy order if the position of the pointer at the time ofsaid single action is within the display of bids and that said tradeorder is a sell order if the position of the pointer at the time of saidsingle action is within the display of asks.
 37. A client system forplacing a trade order for a commodity according to claim 36, whereinsaid trade order characteristics setting component establishes that thetrade order is for a pre-determined fixed quantity and for a pricecorresponding to the position of the pointer at the time of said singleaction.
 38. A client system for placing a trade order for a commodityaccording to claim 36, wherein said trade order characteristics settingcomponent establishes that the trade order is for a quantity equal to acurrent net position of the user in the commodity and for a pricecorresponding to the position of the pointer at the time of said singleaction.
 39. A client system for placing a trade order for a commodityaccording to claim 36, wherein said trade order characteristics settingcomponent establishes that the trade order is for a quantity equal to apredetermined fixed offset plus the sum of all quantities in the marketat prices better than or equal to a price corresponding to the positionof the pointer at the time of said single action and for a pricecorresponding to said position.
 40. A client system for placing a tradeorder for a commodity according to claim 39, wherein said trade ordercharacteristics setting component establishes that said offset is equalto a first pre-determined value if a single action of a first type istaken and said offset is equal to a second predetermined value if asingle action of a second type is taken.